Quote from @Luan Oliveira:
@Brandon Durant, have you considered a three family? It may make for a better house hack with two rents coming in! In the Pawtucket area you should be able to easily get $1,800 for a good quality updated unit. This would provide around $3,600 towards your expenses. Even though you won't be living for free, your out-of-pocket expenses will be a few hundred dollars! As others have said, also analyze it as a full rental, and in this case a 3, 3, 3, would gross about $5,400, notwithstanding any increases in the next 5 years. This puts you pretty close to the 1% rule around here, with prices hovering around 550 for a 3,3,3. While you won't have astronomical cash flow, the cash on cash return will still be pretty decent. Also, you can take the 1,000 to 1,500 you'll be saving in housing expenses for the next five years and use that to save towards another property! That should be at least 50K in the bank!
I've been house hacking in the area for a bit, and know others who have too. Let me know if you have any more questions!
Thank you for the reply Luan,
We have slightly looked into 3 unit properties but would prefer a 2 family just for the lower overall mortgage and convenience. We would like the property to cashflow when we move out, but would be okay if it just breaks even. Wanting to hold the property for years to enjoy the tax benefits like @Ryan Thomson had mentioned, have an investment that beats inflation and enjoy the income when we're older.
We are looking to move out of the unit we live in after about 5 years and buy our own single family primary residence and just have this one investment on the side while working to maybe purchase a cash based business sometime further in the future
